FOREIGN DIRECT INVESTMENT (FDI)
1. Context
Net foreign direct investment (FDI) inflows turned negative once again in May with outflows exceeding inflows by $74 million, according to the latest Reserve Bank of India data.
2. FDI in India
- India's net foreign direct investment (FDI) inflows experienced a decline, decreasing by nearly 31% to $25.5 billion during the first 10 months of the 2023-24 fiscal year. The Finance Ministry attributed this decline to a broader trend of slowing investments in developing countries, while expressing optimism for a potential increase in investments in the current calendar year.
- Although global FDI flows overall saw a 3% rise to approximately $1.4 trillion in 2023, economic uncertainty and elevated interest rates impacted global investment, resulting in a 9% decrease in FDI flows to developing nations, as outlined in the Ministry's February assessment of economic performance.
- Reflecting the global trend of reduced FDI flows to developing countries, gross FDI inflows to India also experienced a slight decline, from $61.7 billion to $59.5 billion during the period from April 2023 to January 2024. In terms of net inflows, the corresponding figures were $25.5 billion versus $36.8 billion. The decrease in net inflows was primarily attributed to an increase in repatriation, while the decline in gross inflows was minimal.
- While a modest uptick in global FDI flows is anticipated for the current calendar year, attributed to a decrease in inflation and borrowing costs in major markets that could stabilize financing conditions for international investment, significant risks persist, according to the Ministry. These risks include geopolitical tensions, elevated debt levels in numerous countries, and concerns regarding further fragmentation of the global economy
3. Foreign Direct Investment (FDI)
Foreign Direct Investment (FDI) refers to the investment made by individuals, businesses, or governments from one country (the home country) into another country (the host country) with the objective of establishing a lasting interest or significant degree of influence in the foreign business or enterprise
Key Aspects:
- FDI involves the transfer of funds and resources from one country to another. This capital inflow can help stimulate economic growth in the host country by providing funds for investment in infrastructure, technology, and other areas.
- FDI often leads to the creation of jobs in the host country. When foreign companies establish subsidiaries or invest in existing businesses, they typically hire local employees, which can help reduce unemployment and improve living standards
- Foreign investors often bring advanced technologies, processes, and management practices to the host country. This technology transfer can enhance the host country's productivity, competitiveness, and industrial capabilities
- FDI can provide access to new markets for both the host country and the investing company. Foreign investors can tap into the host country's consumer base, while the host country gains access to the investing company's global distribution networks.
- FDI can contribute to overall economic development in the host country by promoting industrialization, improving infrastructure, and fostering innovation and entrepreneurship.
4.FDI Routes in India
India has several routes through which Foreign Direct Investment (FDI) can enter the country. These routes are regulated by the Reserve Bank of India (RBI) and the Department for Promotion of Industry and Internal Trade (DPIIT), and they define the conditions, limits, and sectors in which FDI is allowed
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Automatic Route: Under the automatic route, FDI is allowed without the need for prior approval from the RBI or the government. Investors only need to notify the RBI within a specified time frame after the investment is made. This route is available for most sectors, except those that are prohibited or require government approval.
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Government Route: In sectors or activities that are not covered under the automatic route, FDI requires government approval. Investors must apply for approval through the Foreign Investment Facilitation Portal (FIFP) or the Foreign Investment Promotion Board (FIPB), depending on the sector.
4.1. Examples
- Under the automatic route, FDI of up to 100% is allowed for manufacturing of automobiles and components.
- For the manufacturing of electric vehicles (EVs), 100% FDI is allowed under the automatic route.
- In single-brand retail trading, 100% FDI is allowed, with up to 49% allowed under the automatic route. Beyond 49%, government approval is required.
- Multi-brand retail trading (supermarkets and department stores) with FDI is permitted in some states, subject to certain conditions and restrictions. The FDI limit is typically capped at 51%.
- FDI in the insurance sector is allowed up to 74%, with up to 49% under the automatic route. Beyond 49%, government approval is needed
- In the telecom sector, 100% FDI is allowed, with up to 49% under the automatic route. Beyond 49%, government approval is required
- In the defense sector, FDI up to 74% is allowed under the automatic route, with government approval required for investments beyond 49%
- In most segments of the media and broadcasting sector, including print and digital media, 100% FDI is allowed, with up to 49% under the automatic route
4.2.Sectors where FDI Prohibited
- FDI is prohibited in the atomic energy sector, which includes activities related to the production of atomic energy and nuclear power generation.
- FDI is generally prohibited in the gambling and betting industry, which includes casinos and online betting platforms
- FDI is not allowed in the lottery business, except for state-run lotteries
- FDI is prohibited in chit funds, which are traditional Indian savings and credit schemes.
- Nidhi companies are non-banking finance companies (NBFCs) that facilitate mutual benefit funds. FDI is typically not permitted in these entities
- While FDI is allowed in single-brand retail trading, it is generally prohibited in multi-brand retail trading of agricultural products. Some states have allowed it under specific conditions, but this remains a highly regulated area.
- FDI is not allowed in the trading of transferable development rights (TDRs) pertaining to the construction of real estate
5. Foreign Portfolio Investors (FPIs)
Foreign Portfolio Investors (FPIs) refer to foreign individuals, institutions, or funds that invest in financial assets in a country, such as stocks, bonds, mutual funds, and other securities. FPIs are distinct from Foreign Direct Investors (FDIs), who typically make long-term investments in companies and assets to establish a lasting interest
Key Aspects:
- FPIs invest in a country's financial markets, primarily by buying and selling securities traded on stock exchanges and fixed-income instruments like bonds and government securities
- FPIs often seek to diversify their investment portfolios by spreading their investments across different asset classes, sectors, and countries. This diversification helps manage risk and enhance returns
- FPIs have the flexibility to buy and sell securities in the secondary market, providing liquidity to the market and contributing to price discovery
- FPIs typically have a shorter investment horizon compared to Foreign Direct Investors (FDIs). They may engage in short-term trading or hold securities for a few months to a few years.
- FPIs are subject to regulatory frameworks and restrictions in the countries where they invest. These regulations are designed to ensure that foreign investments do not pose undue risks to the local financial markets and economy.
6.Foreign Portfolio vs. Foreign Direct Investment
| FPI (Foreign Portfolio Investment) | FDI (Foreign Direct Investment) |
| FPI involves the purchase of financial assets such as stocks, bonds, mutual funds, and other securities in a foreign country. These investments are typically made with the intention of earning returns on capital and do not result in significant control or ownership of the underlying businesses | FDI entails making an investment in a foreign country with the primary objective of establishing a lasting interest and significant control or influence over a business enterprise or physical assets. FDI often involves the acquisition of a substantial ownership stake (typically at least 10%) in a company or the establishment of new business operations. |
| FPI is generally characterized by a shorter investment horizon. Investors in FPI may engage in trading and portfolio rebalancing activities, and their investments are often more liquid. The focus is on earning capital gains and income from investments. | FDI is characterized by a longer-term commitment. Investors in FDI intend to engage in the day-to-day management or decision-making of the business, contribute to its growth and development, and generate profits over an extended period. |
| FPI investors typically have little to no influence or control over the companies in which they invest. They are passive investors who participate in the financial markets and rely on market dynamics to drive returns. | FDI investors actively participate in the management and decision-making of the businesses they invest in. They often seek to exercise control over company operations and strategy, which may include appointing board members or key executives. |
| FPI investments are often made through financial instruments like stocks, bonds, and securities. Investors may use instruments like mutual funds or exchange-traded funds (ETFs) to gain exposure to foreign markets | FDI investments involve a direct equity stake in a company, either through share acquisition or the establishment of a subsidiary or branch in the host country. FDI can also involve the purchase of real assets such as land, factories, or infrastructure |
| FPI can provide short-term capital inflows, but it may be more susceptible to market volatility and sudden capital outflows. It may not have as direct an impact on job creation and economic development as FDI. | FDI often contributes to long-term economic development by creating jobs, stimulating infrastructure development, transferring technology and expertise, and enhancing the competitiveness of local industries |
| FPI investments are subject to regulations that vary by country and may include foreign ownership limits, reporting requirements, and tax considerations. | FDI is subject to regulations that can be more stringent and may involve government approval, sector-specific conditions, and investment protection measures |
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For Prelims: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc
For Mains: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment
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Previous Year Questions
1. Both Foreign Direct Investments (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. (UPSC CSE 2011)
Which one of the following statements best represents an important difference between the two?
A.FII helps bring better management skills and technology, while FDI only brings in capital
B.FII helps in increasing capital availability in general, while FDI only targets specific sectors C.FDI flows only into the secondary markets, while FII targets primary market
D.FII is considered to the more stable than FDI
Answer (B)
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Source: indianexpress
COMPREHENSIVE ECONOMIC AND TRADE AGREEMENT (CETA)
1. Context
The India-U.K. Comprehensive Economic and Trade Agreement (CETA) came into effect on July 15, a year after it was signed. At the same time, the India-U.K. Double Contribution Convention (DCC) also comes into effect. The trade deal has been hailed by both sides, with Commerce Secretary Rajesh Agrawal even calling it the “gold standard” of India’s free trade agreements.
2. What Trade Benefits Does India Receive Under CETA?
- According to India's Chief Trade Negotiator, Rajesh Agrawal, the Comprehensive Economic and Trade Agreement (CETA) is notable not only for its extensive coverage but also for the substantial market access it provides.
- The agreement goes beyond addressing a broad range of tariff and non-tariff measures by offering meaningful concessions across several key sectors, making it one of India's most comprehensive trade agreements.
- Under the agreement, the United Kingdom has committed to eliminating customs duties on 96.8% of its tariff lines immediately after the agreement comes into effect. These tariff reductions account for approximately 97.7% of India's exports by value.
- In addition, tariffs on another 2% of tariff lines, representing nearly 1.8% of trade value, will be reduced through tariff-rate quotas.
- As a result, the agreement ultimately provides preferential market access covering 98.8% of tariff lines and approximately 99.5% of the total value of bilateral trade.
- The scope of CETA extends well beyond tariff liberalization. Spread across 30 chapters, the agreement includes provisions relating to digital commerce, government procurement, innovation, support for micro, small and medium enterprises (MSMEs), labour standards, environmental sustainability, and gender-related issues.
- It also establishes rules to address non-tariff barriers, including Sanitary and Phytosanitary (SPS) Measures and Technical Barriers to Trade (TBT), with the objective of ensuring that such regulations facilitate legitimate public policy goals without becoming unnecessary obstacles to international trade.
- Services trade constitutes another major component of the agreement and is particularly significant for India, where the services sector is a key contributor to economic growth and export earnings.
- Under CETA, the United Kingdom has provided enhanced market access by allowing Indian businesses to establish a commercial presence in sectors such as information technology and computer services, consulting, and environmental services.
- This enables Indian enterprises to expand their operations in the U.K. through branches, subsidiaries, or representative offices, thereby strengthening their participation in the British market
3. What is the Double Contribution Convention (DCC), and How Does It Benefit Indian Workers in the United Kingdom?
- A major achievement for India under the Comprehensive Economic and Trade Agreement (CETA) is the inclusion of the Double Contribution Convention (DCC).
- This provision is designed to prevent Indian professionals temporarily employed in the United Kingdom from making mandatory social security contributions in both countries simultaneously.
- Under the DCC, Indian employees who continue contributing to India's social security system, along with their employers, are exempt from paying social security contributions in the U.K. for a period of up to five years.
- The exemption was originally proposed for three years but was subsequently extended to five years during negotiations.
- Before the introduction of the DCC, Indian workers on temporary assignments in the United Kingdom faced the burden of contributing to social security schemes in both India and the U.K.
- Since most Indian professionals are deputed to the U.K. for periods not exceeding five years, they rarely remained in the country long enough to qualify for U.K. social security benefits. Under British regulations, workers generally need to contribute for at least 10 years before becoming eligible to receive pension and other social security benefits.
- Consequently, many Indian employees paid into the U.K. system without ever receiving any corresponding benefits because they returned to India before meeting the eligibility criteria.
- The DCC addresses this long-standing concern by exempting eligible Indian workers from U.K. social security payments during their temporary stay, provided they continue making the required contributions in India.
- This exemption is expected to cover nearly 90% of Indian professionals working in the United Kingdom, enabling them to retain around 23% of their salary that would otherwise have been deducted as U.K. social security contributions
4. What Benefits Does the United Kingdom Receive Under CETA?
- The Comprehensive Economic and Trade Agreement (CETA) provides the United Kingdom with substantial opportunities to expand its presence in the Indian market across both goods and services.
- While India has safeguarded certain strategically important and sensitive sectors from excessive foreign competition, the agreement nevertheless offers British businesses significantly improved access to one of the world's fastest-growing major economies.
- Under the agreement, India has committed to eliminating customs duties immediately on products representing 30.3% of bilateral trade value.
- Tariffs on another 47% of trade value will be phased out over a specified period, while products accounting for 12.1% of trade value will benefit from preferential tariff concessions through tariff-rate quotas.
- Overall, the agreement provides preferential access covering 89.5% of India's tariff lines, representing approximately 89.4% of the total value of bilateral trade.
- Among the sectors expected to benefit the most are several iconic British exports. The gradual reduction in import duties will make U.K.-made whisky more affordable for Indian consumers.
- Similarly, tariffs on British automobiles, engineering equipment, and a range of industrial products will decline, improving their competitiveness in the Indian market and creating new export opportunities for U.K. manufacturers.
- The agreement also strengthens market access for British service providers. India has agreed to liberalize several important service sectors, including accountancy, auditing, financial services, telecommunications, and environmental services.
- As a result, U.K.-based firms operating in these fields will be able to provide services to Indian clients under more favourable conditions, often without the need to establish a permanent commercial presence in India.
- In addition, India has committed to recognizing certain U.K. professional qualifications, particularly in the fields of law and accounting, thereby making it easier for qualified British professionals to engage with the Indian market and offer their expertise
5. Are There Any Unique Features of the CETA?
- In addition to its comprehensive coverage and extensive market access commitments, the Comprehensive Economic and Trade Agreement (CETA) contains several distinctive provisions that make it different from India's earlier free trade agreements.
- Among the most noteworthy are the provisions relating to automobile imports and government procurement, both of which represent significant policy developments.
- One of the landmark features of the agreement is India's decision to reduce import duties on automobiles from the United Kingdom.
- This is the first time India has agreed to provide preferential tariff treatment for imported passenger vehicles under a trade agreement.
- As notified by the Directorate General of Foreign Trade (DGFT) on 10 July, the agreement permits the import of 20,000 fully built petrol and diesel passenger vehicles from the U.K. during the first year at concessional customs duty rates ranging from 30% to 50%, depending on factors such as engine capacity and vehicle category.
- These preferential rates are substantially lower than the regular import duties, which generally range between 66% and 110%.
- The agreement also establishes a phased quota mechanism for automobile imports. The annual import quota for eligible passenger vehicles will gradually increase to 37,000 units by the fifth year of the agreement.
- Thereafter, the quota will progressively decline, eventually stabilizing at 15,000 vehicles annually from the fifteenth year onwards. During this period, the concessional tariff applicable to vehicles imported within the quota will also be reduced, reaching 10% by the fifth year and remaining at that level thereafter.
- Separate quota limits and tariff schedules have also been negotiated for electric and other alternative-fuel passenger vehicles, as well as for commercial vehicles, reflecting the diversity of the automobile sector.
- Government procurement is another area where the agreement introduces important changes. Under CETA, companies from the United Kingdom will be permitted to participate in procurement tenders floated by the Government of India.
- However, their participation will be subject to specific conditions, and they will be treated as Class-II local suppliers in eligible Central Government tenders, ensuring that domestic firms continue to enjoy preferential treatment in public procurement.
- At the same time, Indian businesses will benefit from improved access to the United Kingdom's government procurement market. Indian suppliers will continue to receive Class-I local supplier preference in the U.K., enabling them to compete more effectively for eligible public contracts.
- Nevertheless, this access is limited to procurement by non-sensitive Central Government departments and public utilities, while contracts awarded by central public sector enterprises (PSUs) and state or local government bodies remain outside the scope of the agreement.
- According to India's Ministry of Commerce, the arrangement grants Indian companies legal access to U.K. government procurement opportunities valued at approximately £90 billion (around US$122 billion).
- In return, India has opened procurement opportunities worth nearly US$114 billion to eligible British firms, creating a mutually beneficial framework for public sector contracting
6. Way Forward
One notable aspect absent from the India–U.K. Comprehensive Economic and Trade Agreement (CETA) is a dedicated investment commitment. Unlike some of India's recent trade agreements, CETA does not contain a provision requiring the United Kingdom to facilitate a specific level of investment into India over a defined period.
For instance, the Trade and Economic Partnership Agreement (TEPA) between India and the four member countries of the European Free Trade Association (EFTA) includes an investment-related commitment under which the EFTA bloc has agreed to facilitate US$100 billion in investments in India over a 15-year period. Similarly, the India–New Zealand Free Trade Agreement contains a provision whereby New Zealand has committed to facilitating US$20 billion of investment in India during the same 15-year timeframe.
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For Prelims: Comprehensive Economic and Trade Agreement (CETA), Double Contribution Convention (DCC)
For Mains: GS II - International relations
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Previous Year Questions
1. Consider the following countries:
1. Australia
2. Canada
3. China
4. India
5. Japan
6. USA
Which of the above are among the free-trade partners' of ASEAN? (UPSC 2018)
A. 1, 2, 4 and 5 B. 3, 4, 5 and 6 C. 1, 3, 4 and 5 D. 2, 3, 4 and 6
Answer: C
2. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if (UPSC 2018) (a) Industrial output fails to keep pace with agricultural output. Answer: C 3. The SEZ Act, 2005 which came into effect in February 2006 has certain objectives. In this context, consider the following: (2010)
Which of the above are the objectives of this Act? (a) 1 and 2 only (b) 3 only (c) 2 and 3 only (d) 1, 2 and 3 Answer: A 4. A “closed economy” is an economy in which (UPSC 2011) (a) the money supply is fully controlled Answer: D 5. With reference to the “G20 Common Framework”, consider the following statements: (UPSC 2022)
1. It is an initiative endorsed by the G20 together with the Paris Club. 2. It is an initiative to support Low Income Countries with unsustainable debt. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Answer: C
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Source: The Hindu
DARK PATTERNS
1. Context
Despite years of regulatory scrutiny, dark patterns deployed by online platforms continue to mislead Indian customers and prevent them from making right choices. However, a new study has a bold proposal: Ensure all listed companies and those planning to list in India do not use dark patterns in their digital consumer journey and transactions.
2. What are Dark Patterns?
- Dark patterns, often referred to as deceptive design practices, are intentionally crafted user interface techniques embedded in websites or applications to influence users into revealing personal information or making decisions they would not ordinarily choose. These tactics exploit user behaviour through misleading or coercive design elements.
- Common examples of dark patterns include requiring users to disclose personal details before accessing products or services, making the process of cancelling subscriptions unnecessarily complicated, and using persistent promotional calls or messages to pressure consumers into purchasing products.
- A simple illustration of a dark pattern is a pop-up advertisement that repeatedly appears on a webpage, where the close button ("X") is deliberately made tiny, hidden, or difficult to click. As a result, users may accidentally click on the advertisement instead of closing it, increasing unwanted engagement.
- These deceptive strategies commonly involve manipulative interface designs such as automatic subscription renewals, complicated cancellation procedures, misleading price displays, confusing consent requests, personalised recommendations designed to influence choices, gamification techniques, and behavioural nudges that steer consumers towards decisions that primarily benefit the service provider.
- The expression "dark patterns" was introduced by Harry Brignull, a user experience (UX) designer based in London, in 2010 to describe these unethical design practices
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3. CCPA Guidelines on Dark Patterns
On 1 December 2023, the Central Consumer Protection Authority (CCPA) released comprehensive guidelines aimed at preventing and regulating the use of dark patterns in digital platforms. The guidelines identify 13 specific categories of deceptive practices that businesses must avoid.
(i) False Urgency:
This practice creates an artificial feeling of scarcity or time pressure to influence consumers into making quick decisions. Examples include falsely claiming that a product is in limited supply or exaggerating its popularity to encourage immediate purchases.
(ii) Basket Sneaking:
Additional products or services are secretly added to a consumer's shopping cart without their explicit knowledge or approval, increasing the final purchase amount.
(iii) Confirm Shaming:
Users are manipulated through guilt-inducing messages or criticism for choosing not to accept an offer, subscribe, or complete a transaction.
(iv) Forced Action:
Consumers are compelled to perform actions they may not otherwise choose, such as creating an account, sharing personal information, or subscribing to a service before accessing desired content or features.
(v) Nagging:
Users are repeatedly interrupted by persistent notifications, reminders, pop-ups, or prompts encouraging them to complete a purchase or engage with a service, even when they have not consented to such repeated interactions.
(vi) Subscription Traps:
Signing up for a service is made simple, while cancelling it is intentionally made difficult through hidden options, multiple procedural steps, ambiguous instructions, or compulsory payment authorisations, including for free trial subscriptions.
(vii) Bait and Switch:
Consumers are attracted through advertisements promoting one product or service, but are ultimately provided with a different or inferior alternative.
(viii) Rogue Malware:
Users are deceived into believing that their device is infected with harmful software through fake security alerts or ransomware messages, prompting them to purchase fraudulent antivirus tools that may actually install malicious software.
(ix) Disguised Advertisements:
Advertisements are intentionally designed to resemble editorial content, news reports, reviews, or user-generated material, making it difficult for consumers to distinguish promotional content from genuine information.
(x) Interface Interference:
The design of a website or application is manipulated to emphasise certain choices while concealing or downplaying other important information, thereby steering users toward decisions that primarily benefit the platform.
(xi) Drip Pricing:
The complete cost of a product or service is not disclosed at the beginning of the purchase process. Additional charges are gradually introduced later, after users have invested time in the transaction. Similarly, products advertised as "free" may require undisclosed in-app purchases or payments for continued use.
(xii) Trick Questions:
Confusing wording, double negatives, ambiguous language, or misleading questions are deliberately used to influence consumers into selecting options they did not intend to choose.
(xiii) SaaS Billing:
In Software-as-a-Service (SaaS) business models, recurring subscription payments are collected through billing practices that exploit automatic renewals, making it difficult for users to recognise, control, or discontinue recurring charges
Central Consumer Protection Authority (CCPA)The Central Consumer Protection Authority (CCPA) has been established under Section 10(1) of the Consumer Protection Act, 2019. This legislation replaced the earlier Consumer Protection Act, 1986, with the objective of expanding the legal framework to address emerging consumer protection challenges. The Act came into effect on 24 July 2020. The primary mandate of the CCPA is to safeguard consumer rights by preventing and addressing unfair trade practices, misleading or false advertisements, and other activities that adversely affect the interests of consumers and the general public. |
4. IRDAI’s Steps to Curb Dark Patterns
- The Insurance Regulatory and Development Authority of India (IRDAI) has introduced several measures to prevent the use of dark patterns in the insurance sector and promote fair, transparent, and consumer-friendly practices.
- Insurers and insurance intermediaries are required to provide clear, accurate, and easily understandable information about policy features, premiums, exclusions, terms, and conditions, enabling customers to make informed decisions.
- IRDAI has directed insurers to avoid misleading advertisements, hidden charges, pre-selected options, deceptive consent mechanisms, and other manipulative digital practices that may influence consumer choices unfairly.
- The regulator has also strengthened disclosure requirements, simplified policy documents, and established robust grievance redressal mechanisms to ensure that policyholders can easily resolve complaints.
- In addition, IRDAI encourages insurers to adopt ethical digital interface designs, enhance transparency in online sales, and ensure that customers can purchase, renew, or discontinue insurance products without unnecessary obstacles or coercive practices.
- These initiatives aim to protect policyholders, improve consumer confidence, and promote accountability within the insurance industry.
5. What are the Ethical and Economic Implications of Dark Patterns?
Ethical Implications
Dark patterns raise significant ethical concerns because they undermine consumer autonomy and exploit behavioural biases for commercial gain.
- Violation of Informed Consent: Users are often manipulated into making decisions without fully understanding the consequences, compromising genuine and informed consent.
- Erosion of Consumer Autonomy: Deceptive interface designs restrict users' ability to make free and rational choices.
- Breach of Trust: The use of misleading tactics damages consumer confidence in digital platforms and online businesses.
- Privacy Concerns: Many dark patterns encourage or coerce users into sharing excessive personal data, threatening their privacy and data security.
- Manipulation of Vulnerable Groups: Children, elderly individuals, and digitally inexperienced users are particularly susceptible to deceptive design practices.
- Unfair Business Practices: Companies employing dark patterns gain an unfair competitive advantage over businesses that follow ethical and transparent practices.
- Lack of Transparency: Hidden fees, disguised advertisements, and misleading interfaces reduce openness and accountability in digital transactions.
Economic Implications
Dark patterns have far-reaching economic consequences for consumers, businesses, and the digital economy.
- Financial Losses for Consumers: Hidden charges, unintended subscriptions, and automatic renewals increase consumer expenditure without informed approval.
- Higher Consumer Complaints: Misleading practices result in increased disputes, refund requests, and litigation, raising compliance and operational costs for businesses.
- Reduced Market Efficiency: When consumers make decisions based on manipulated information, competition becomes distorted and efficient allocation of resources is affected.
- Loss of Consumer Confidence: Declining trust in digital platforms can reduce online transactions and slow the growth of the digital economy.
- Regulatory and Compliance Costs: Businesses may incur substantial penalties, legal expenses, and compliance costs due to stricter consumer protection regulations.
- Reputational Damage: Companies found using deceptive practices may suffer long-term brand erosion, customer attrition, and reduced market value.
- Innovation Disincentives: Firms relying on manipulative designs may prioritise deceptive marketing over improving product quality and customer experience, thereby discouraging genuine innovation.
6. Way Forward
Dark patterns present both ethical and economic challenges by compromising consumer rights, transparency, and fair competition. Eliminating these practices through effective regulation, ethical digital design, stronger consumer awareness, and corporate accountability is essential for building a trustworthy, inclusive, and sustainable digital economy
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For Prelims: Insurance Regulatory and Development Authority of India (IRDAI), Dark Patterns, Central Consumer Protection Authority (CCPA)
For Mains: GS II-Government policies and interventions
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Source: Indianexpress
CENSUS
1. Context
With the population enumeration phase of the nationwide Census just six months away, the Registrar General of India (RGI) is learnt to be grappling with the methodology for caste enumeration that is meant to be a part of it.
2. History of Census
- India had conducted the Census every 10 years since 1881, but in 2020, the decennial exercise for Census 2021 had to be postponed due to the pandemic.
- Though the government has not announced fresh dates for the Census, the groundwork is being laid and details are emerging about some of the features.
- It will be the first digital Census allowing citizens to "self-enumerate". The NPR (National Population Register) has been made compulsory for citizens who want to exercise the right to fill out the Census form on their own rather than through government enumerators.
- For this, the Office of the Registrar General of India (RGI) has designed a "self-enumeration, Aadhaar or mobile number will be mandatorily collected.
3. Status of the Census exercise
- A January 2 notification extending the deadline for freezing administrative boundaries in States until June 30 has ruled out the exercise at least till September.
- As preparation and training take at least three months, the Census will have to be pushed to next year.
- Around 30 lakh government officials will be assigned as enumerators and each will have the task to collect the details of 650-800 people through both online and offline modes, covering an estimated population of 135 crore people.
- The Lok Sabha election is due in April-May 2024 and it is unlikely that the Census will be carried out before that since the same workforce will be dedicated to the elections.
- The completion of both phases of the Census will take at least 11 months, even if done at an accelerated pace from October 1.
4. Holding up the Census
- One reason which is holding up the exercise is the amendments proposed to the Registration of Births and Deaths Act, of 1969.
- The government wants to have a centralised register of births and deaths that can be used to update the population register, electoral register, Aadhaar, ration card, passport and driving license databases.
- The centrally stored data will be updated in real-time without a human interface leading to addition and deletion from electoral rolls when an individual turns 18 and after an individual's death respectively.
- A Bill to link the births and deaths registered with the population register and others are expected to be tabled in the next session of Parliament.
5. NPR
- The NPR, unlike the Census, is a comprehensive identity database of every "usual resident" in the country and the data proposed to be collected at the family level can be shared with States and other government departments.
- Though Census also collects similar information, the Census Act of 1948 bars sharing any individual's data with the State or Centre and only aggregate data at the administrative level can be released.
- According to Citizenship Rules 2003 under the Citizenship Act, 1955, NPR is the first step towards a compilation of the National Register of Indian Citizens (NRIC/NRC).
- Assam is the only State where an NRC has been compiled based on the directions of the Supreme Court, with the final draft of Assam's NRC excluding 19 lakhs of the 3.29 crores applicants.
- Assam Government has rejected the NRC in its current form and demanded re-verification of 30 per cent of names included in the NRC in areas bordering Bangladesh and 10 per cent in the remaining State.
- In 2020, the NPR was opposed by several State governments such as West Bengal, Kerala, Rajasthan, Odisha, Bihar, Andhra Pradesh, Telangana, Punjab and Chhattisgarh and Civil Society Organisations due to its link with the proposed NRC as it might leave many people stateless for want of legacy documents.
- There are apprehensions that the Citizenship Amendment Act 9 (CAA), 2019 allows citizenship based on religion to six undocumented religious communities from Pakistan, Afghanistan and Bangladesh who entered India on or before December 31, 2014, will benefit non-Muslims excluded from the proposed citizens' register, while excluded.
- Muslims will have to prove their citizenship. The government has denied that the CAA and NRC are linked and there are currently any plans to compile a countrywide NRC.
5.1. The current status of NPR
- The NPR was first collected in 2010 when the Congres government was in power at the Centre.
- It was updated in 2015 and already has details of 119 crore residents.
- In March 2020, the Ministry of Home Affairs (MHA) amended the Census Rules framed in 1990 to capture and store the Census data in an electronic form and enabled self-enumeration by respondents.
- The NPR is scheduled to be updated with the first phase of Census 2021.
- For this phase (house listing and household phase), 31 questions have been notified, while for the population enumeration, the second and main phase 28 questions have been finalised but are yet to be notified.
- The NPR is expected to collect details on 21 parameters of all family members, up from 14 questions in 2010 and 2015.
- The Sub-heads include passport number, relationship to head of the family, whether divorced/ widowed or separated, mother tongue if non-worker, cultivator, labourer, government employee, daily wage earner among others.
- The form also has a column on Aadhar, mobile phone, Voter ID and driver's licence.
- Though the government has claimed that the NPR form has not been finalised yet, the sample form is part of the Census of India 2021 Handbook for Principal/District Census Officers and Charge Officers in 2021.
- The NPR has retained contentious questions such as "mother tongue, place of birth of father and mother and last place of residence", possible indicators to determine inclusion in the Citizenship register.
- The questions were opposed by the State governments of West Bengal, Kerala, Rajasthan and Odisha in 2020.
- The final set of questions of both the phases and NPR was asked during a pre-test exercise in 2019 in 76 districts in 36 States and Union Territories covering a population of more than 26 lakhs.
6. Expected expenditure for Census
- The initial draft was prepared by the office of the Registrar General of India and circulated to key Ministries and the Prime Minister's Office called for the conduct of Census 2021 at a cost of ₹9, 275 crores and not the NPR.
- The draft Expenditure Finance Committee (EFC) not was then revised and a financial provision of ₹4, 442.15 crores for updating the NPR was added on the directions of the MHA "subsequently".
- The proposal was cleared on August 16, 2019, and it received the Union Cabinet's nod on December 24, 2019.
- It was decided that the enumerator engaged for Census would also collect details for NPR.
- The Covid-19 pandemic struck in March 2020 and since then both exercises are on hold.
- Now, the NPR has been made compulsory if citizens want to exercise the right to fill out the Census form on their own.
- The deleted Handbook said that it is "mandatory for every usual resident of India to register in the NPR".
- Census is also mandatory and giving false information is a punishable offence.
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For Prelims: NPR, CAA, Census, Covid-19, Expenditure Finance Committee, Registrar General of India, Registration of Births and Deaths Act, of 1969, The Treatise on Indian Censuses Since 1981, Assam,
For Mains:
1. How can citizens file Census details online? Explain the norms being laid down and discuss the reasons for National Population Register being made compulsory for those who want to fill out the form digitally. (250 Words)
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Previous Year Questions
Prelims:
1. Consider the following statements: (UPSC 2009)
1. Between Census 1951 and Census 2001, the density of the population of India has increased more than three times.
2. Between Census 1951 and Census 2001, the annual growth rate (exponential) of the population of India has doubled.
Which of the statements given above is/are correct?
(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
Answer: D
2. In the context of vaccines manufactured to prevent COVID-19 pandemic, consider the following statements: (UPSC 2022)
1. The Serum Institute of India produced COVID-19 vaccine named Covishield using mRNA platform.
2. Sputnik V vaccine is manufactured using vector based platform.
3. COVAXIN is an inactivated pathogen based vaccine.
Which of the statements given above are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: B
3. Sinovac given for Covid-19 is a (UPPSC Combined State Exam 2022)
A. Protein sub-unit
B. Non-replicating viral vector
C. Whole virus vaccine
D. mRNA vaccine
Answer: C
4. Along with the Budget, the Finance Minister also places other documents before the Parliament which Include "The Macro Economic Framework Statement". The aforesaid document is presented because this is mandated by (UPSC 2020)
A. Long-standing parliamentary convention
B. Article 112 and Article 110 (1) of the Constitution of India
C. Article 113 of the Constitution of India
D. Provisions of the Fiscal Responsibility and Budget Management Act, 2003
Answer: D
5. Who is the Census Commissioner of India in 2021? (ICAR Technician 2022)
A. Dr Vivek Joshi
B. Dr C Chandramouli
C. Shri Sailesh
D. DK Sikri
Answer: A
6. The Registration of Birth and Death Act came into force in the year _____. (UPSSSC Junior Assistant 2020)
A. 1964 B. 1969 C. 1972 D.1981
Answer: B
7. Consider the following States: (UPSC 2022)
1. Andhra Pradesh
2. Kerala
3. Himachal Pradesh
4. Tripura
How many of the above are generally known as tea-producing States?
A. Only one State
B. Only two States
C. Only three States
D. All four States
Answer: C
8. Consider the following rivers (UPSC 2014)
1. Barak
2. Lohit
3. Subansiri
Which of the above flows/flow through Arunachal Pradesh?
A. 1 only B.2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: B
Mains:
1. Two parallel run schemes of the Government, viz the Adhaar Card and NPR, one as voluntary and the other as compulsory, have led to debates at national levels and also litigations. On merits, discuss whether or not both schemes need run concurrently. Analyse the potential of the schemes to achieve developmental benefits and equitable growth. (UPSC 2014)
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Source: The Hindu
FEMALE LABOUR FORCE PARTICIPATION RATE (FLPR)
1. Context
New data underlines how Tamil Nadu remains closest in India to replicating China’s women-led electronics manufacturing model, with other states far behind
2. What is the female labour force participation rate (FLPR)?
- The Female Labour Force Participation Rate (FLPR) is a crucial economic indicator that measures the percentage of women who are either employed or actively seeking work in relation to the total working-age female population. This metric helps assess the extent to which women are integrated into the workforce and their role in economic development.
- To calculate FLPR, one considers both employed women and those who are unemployed but actively looking for jobs. This figure is then divided by the total number of working-age women (typically aged 15 and above) and expressed as a percentage. A high FLPR suggests that a large proportion of women are engaged in economic activities, whereas a low FLPR indicates limited workforce participation.
- FLPR is significant as it reflects not only gender equality in employment but also the overall economic productivity of a country. When more women participate in the workforce, economic output rises, and household incomes improve. Moreover, a higher FLPR is often linked to greater social progress, as it reflects better access to education and employment opportunities for women.
- In India, the female labour force participation rate has seen considerable fluctuations over the years. The highest recorded FLPR was 40.8% in 2004-05, after which it witnessed a sharp decline.
- Various factors contributed to this trend, including societal norms that discourage female employment, lack of job opportunities in the formal sector, and a rise in household incomes that reduced the economic necessity for women to work. Additionally, many women opted to pursue higher education, further delaying their entry into the workforce.
- The lack of sufficient opportunities in industries such as manufacturing and services limits the potential for further growth in FLPR. Addressing these challenges requires policy interventions, such as skill development programs, improved childcare support, and greater access to formal employment opportunities for women.
- Thus, while the rise in FLPR in recent years is encouraging, sustained efforts are needed to ensure that women's participation in the labour force is not only increased but also leads to better economic and social outcomes
3. Statistics on female labour force participation rate
- India's female workforce participation rate peaked at 40.8% in 2004-05 but has experienced a decline in the years since. However, beginning in 2017, the Female Labour Force Participation Rate (FLPR) has shown a gradual upward trend, reversing the previous decline.
- This increase has become particularly evident in the years following the COVID-19 pandemic. In rural areas, FLPR rose from 41.5% in 2022-23 to 47.6% in 2023-24, while in urban areas, it increased from 25.4% to 28% over the same period.
- The resurgence in FLPR can be attributed to the economic recovery post-lockdown, which encouraged many women who were previously not part of the workforce to seek employment.
- Additionally, economic hardships have also played a role, compelling more women to enter the labour market in search of income.
- The increasing presence of women in India’s labour force, often referred to as the feminisation of the workforce, requires a more in-depth analysis. The recent rise in FLPR has been largely driven by a surge in self-employment, particularly in agriculture.
- State-wise census data suggests that in regions where women’s participation in the workforce has increased, it is primarily due to their growing involvement in agricultural activities.
- This trend underscores a significant concern—the limited availability of non-agricultural job opportunities for women. In rural areas, employment prospects for women remain largely restricted to agricultural work, highlighting the lack of diverse and stable employment options in other sectors
4. Feminisation of agriculture
- This phenomenon results in the feminisation of agriculture, a concept that economic studies define in two primary ways. Firstly, it signifies a growing share of agricultural work being performed by women, encompassing their expanding roles as smallholder cultivators or casual agricultural wage laborers.
- Secondly, feminisation of agriculture extends beyond labour participation to women’s control and ownership of agricultural resources, as well as their involvement in key decision-making processes. This includes land ownership, land rights, and authority over farm-related choices, such as crop selection and the use of agricultural inputs like fertilizers.
- Several underlying factors have contributed to this shift. The structural transformation of India’s economy has led to a declining contribution of agriculture to the country’s GDP, with employment shifting towards the service sector.
- Additionally, economic distress in rural areas has prompted men to migrate in search of non-agricultural employment, leaving women to take on increased responsibilities in farming.
- Other contributing factors include declining agricultural productivity, rising input costs, climate-related risks, and limited employment opportunities in rural areas. Furthermore, as rural youth—especially those with formal education—aspire for non-farm jobs, male migration from villages has accelerated, placing a greater burden on women to manage agricultural activities
5. Land Ownership and Gender disparity
- The 2005 report by the National Commission on Farmers highlighted a growing trend of women engaging in agricultural activities, including land management and assisting in farm operations.
- Estimates suggest that women contribute nearly 80% of agricultural labor in India and constitute over 42% of the total agricultural workforce. Recent PLFS 2023-24 data further reveals that 76.95% of rural women are employed in agriculture, underscoring their significant role in the sector.
- Despite their extensive contributions, women in agriculture remain largely unrecognized. Findings from the 2015-16 Agriculture Census indicate that while 73% of rural female workers are involved in farming, they control only 11.72% of the total cultivated land.
- This stark contrast highlights gender inequality in land ownership and decision-making. Moreover, most female-owned landholdings are small and marginal, a consequence of historical disparities in land distribution.
- In India, women can obtain land through inheritance, gifts, purchases, or government allocations. However, these avenues often do not guarantee equal access, as financial limitations make it harder for women to buy land, leaving inheritance as a primary means of ownership. Nonetheless, social and cultural barriers continue to hinder their ability to inherit and manage land independently.
- A relevant example is the 2017 land distribution initiative in Uttar Pradesh, where 331 landless households in Mirzapur district were granted land titles. In Sirsi village, 80 titles were distributed, of which only eight went to single women, while in Karkad, out of 251 titles, just 16 were allotted to single women.
- This means that only 7% of the total land titles were allocated to single women, reflecting the persistent gender gap in land ownership. Studies emphasize that securing land rights is crucial for women’s financial stability and their ability to make independent economic decisions
6. Gender equality in agriculture's journey
- It is often emphasized that a woman’s participation in paid employment should not automatically be equated with empowerment. Many women experience a “double burden”, where they must juggle paid work alongside unpaid domestic duties and caregiving responsibilities. Similarly, merely being engaged in agricultural activities does not necessarily lead to their empowerment.
- India’s agrarian economy has been facing financial distress, with declining agricultural incomes. As a result, women’s increased participation in farming may not translate into economic empowerment, especially in the absence of stable non-agricultural job opportunities. Studies also suggest that women have limited decision-making authority over crucial aspects such as fertilizer use, household assets, and alternative sources of livelihood.
- The concept of feminisation of agriculture is frequently discussed alongside the feminisation of poverty and agrarian distress.
- As men migrate to urban areas or other sectors for better employment opportunities, women are often left with no choice but to take up farming, which is typically perceived as a less profitable livelihood option.
- Additionally, gender disparities in land ownership prevent many female farmers from accessing credit, financial resources, and government assistance. Without legal ownership of land, they struggle to qualify for schemes such as the Kisan Credit Card or the Pradhan Mantri Kisan Samman Nidhi Yojana.
- The widespread perception of farmers as predominantly male further contributes to the marginalization of women in the agricultural sector.
- Agriculture involves more than just sowing and harvesting—it requires investment, resource management, and decision-making.
- Therefore, achieving gender equity in agriculture necessitates policies that prioritize women’s inclusion, equitable land distribution, improved access to agricultural technology, and gender-sensitive climate adaptation strategies.
- Recognizing women as central stakeholders in agriculture will be key to their economic empowerment and long-term progress
7. Way Forward
Addressing these issues requires a multi-dimensional approach that ensures equal land rights, financial inclusion, access to technology, and policy frameworks that recognize women as key agricultural stakeholders. Empowering female farmers is not just about increasing their participation in agriculture but also about providing them with the resources, rights, and recognition needed to transform their roles from laborers to decision-makers and landowners. By implementing gender-responsive agricultural policies, improving access to credit, and breaking societal stereotypes, India can move toward a more equitable and sustainable agrarian economy where women play a central and empowered role
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For Prelims: Periodic Labour Force Survey, National Sample Survey Office, labour force participation rate, worker population ratio
For Mains:
1. Examine the changing nature of employment in India, as reflected in the increasing share of self-employment and the declining proportion of regular salaried jobs. Discuss the implications of this shift for the quality and sustainability of employment. (250 Words)
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Previous Year Questions 1. Given below are two statements, one is labeled as Assertion (A) and the other as Reason (R). (UPPSC 2019)
Assertion (A): The labour force participation rate is falling sharply in recent years for females in India.
Reason (R): The decline in labour force participation rate is due to improved family income and an increase in education.
Select the correct answer from the codes given below:
Codes:
A. Both (A) and (R) are true and (R) is the correct explanation of (A)
B. Both (A) and (R) are true and (R) is not the correct explanation of (A)
C. (A) is true, but (R) is false
D. (A) is false, but (R) is true
2. Which of the following statements about the employment situation in India according to the periodic Labour Force Survey 2017-18 is/are correct? (UPSC CAPF 2020)
1. Construction sector gave employment to nearly one-tenth of the urban male workforce in India
2. Nearly one-fourth of urban female workers in India were working in the manufacturing sector
3. One-fourth of rural female workers in India were engaged in the agriculture sector
Select the correct answer using the code given below:
A. 2 only B. 1 and 2 only C. 1 and 3 only D. 1, 2 and 3
3. Disguised unemployment generally means (UPSC 2013)
(a) large number of people remain unemployed
4. Assertion (A): Workers - population ratio in India is low in contrast to that in developed countries. Reason (R): Rapid growth of population, low female worker population rate and omission of unpaid family workers lead to low worker-population ratio. Choose the correct answer: (Telangana Police SI Mains 2018) A. (A) is true, but (R) is false.
B. (A) is false, but (R) is true.
C. Both (A) and (R) are true, but (R) is not a correct explanation of (A).
D. Both (A) and (R) are true, but (R) is the correct explanation of (A).
Answers: 1-C, 2-B, 3-C, 4-D Mains1. Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. (UPSC 2023) |
Source: Indianexpress
KEN-BETWA RIVER LINKING PROJECT
1. Context
After decades of uncertainty, the Ken-Betwa river linking project, India’s first inter-basin river transfer that aims to irrigate the parched Bundelkhand region, is now racing to meet new deadlines.
2. About Ken-Betwa Link Project
- It is the first project under the National Perspective Plan for the interlinking of rivers.
- It envisages transferring water from the Ken river to the Betwa river, both tributaries of the Yamuna.
- The Ken-Betwa Link Canal will be 221 km long, including a 2 km long tunnel.
- The project has two phases with mainly four components.
- Phase-I will involve one of the components Daudhan Dam complex and is subsidiary units such as Low-Level Tunnel, High-Level Tunnel, Ken-Betwa Link Canal, and powerhouses.
- Phase II will involve three components Lower Orr Dam, Bina Complex Project, and Kotha Barrage.
| According to the Jal Shakti Ministry, the project is expected to provide annual irrigation of 10.62 lakh hectares, supply drinking water to about 62 lakh people, and generate 103 MW of hydropower and 27 MW of solar power. |
- As per an official statement issued after the Cabinet approval on Wednesday, the total cost of the Ken-Betwa link project has been assessed at Rs.44,605 crores at 2020-21 price levels.
- The Union Cabinet has approved central support of Rs.39,317 crores for the project, covering a grant of Rs.36,290 crores and a loan of Rs.3,027 crores.
- The statement further said that the project is proposed to be implemented in 8 years with “state-of-the-art technology.
3. Special Purpose Vehicle (SPV)
- A Special Purpose Vehicle (SPV) for the project is called Ken-Betwa Link Project Authority (KBLPA) will be set up to implement the project.
- The Centre has set in motion the process of creating the National Interlinking of Rivers Authority (NIRA) is an independent autonomous body for planning, investigation, financing, and implementation of the interlinking of river (ILR) projects in the country.
- The NIRA will have the power to set up SPV for individual link projects.
Ken-Betwa project agreementOn March 22, 2021, a memorandum of agreement was signed between the Ministry of Jal Shakti and the governments of Madhya Pradesh and Uttar Pradesh to implement the Ken-Betwa Link Project (KBLP).
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4. Conceptualiztion of the project
- The idea of linking Ken with Betwa got a major push in August 2005, when a tripartite memorandum of understanding for the preparation of a detailed project report (DPR) was signed between the Centre and the two states.
- In 2008, the Centre declared KBLP a National Project. Later, it was included as part of the Prime Minister’s package for the development of the drought-prone Bundelkhand region.
- In April 2009, it was decided that the DPR will be prepared in two phases.
- In 2018, a comprehensive DPR including phase-I, II, and additional areas proposed by Madhya Pradesh was also prepared.
- It was sent to Uttar Pradesh, Madhya Pradesh, and the Central Water Commission in October 2018.
- The memorandum of agreement was signed to implement the project.
5. Benefits from Project
- The project lies in Bundelkhand, a drought-prone region, which spreads across 13 districts of Uttar Pradesh and Madhya Pradesh.
| According to the Jal Shakti Ministry, the project will be of immense benefit to the water-starved region, especially the districts of Panna, Tikamgarh, Chhatarpur, Sagar, Damoh, Datia, Vidisha, Shivpuri and Raisen of Madhya Pradesh, and Banda, Mahoba, Jhansi and Lalitpur of Uttar Pradesh. |
- It will pave the way for more interlinking of river projects to ensure that scarcity of water does not become an inhibitor for development in the country.
Image source: The Indian Express6. The Panna Tiger Reserve
- According to the National Water Development Agency under the Jal Shakti Ministry, the Daudhan dam, to be built on the Ken river, will be 77 meters high and its gross capacity will be 2,853 million cubic meters.
- According to the NWDA, the reservoir of Daudhan dam will involve “a submergence of 9000 ha area, out of which 5803 ha comes under Panna Tiger Reserve.
- The latter includes 4141 ha of forest area which is about 7.6% of the total Panna Tiger Reserve area”.
- To mitigate adverse impacts on Panna Tiger Reserve, as decided by NTCA,
- Landscape Management Plan to decide mitigation strategy concerning KenBetwa Link entrusted to Wildlife Institute of India, Dehradun, and is in its final stage.
- In addition to above three wildlife sanctuaries, viz Nauradehi, Rani Durgawati of MP and Ranipur WLF of UP are planned to be integrated with PTR for the proper conservation of Wild Life under Tiger Reserve.
7. The concept of river linking in India
- In the past, several river-linking projects have been taken up.
- For instance, the Periyar Project, under which the transfer of water from the Periyar basin to the Vaigai basin was envisaged, was commissioned in 1895.
- Other projects such as Parambikulam Aliyar, Kurnool Cudappah Canal, Telugu Ganga Project, and Ravi-Beas-Sutlej too were undertaken.
- In the 1970s, the idea of transferring surplus water from a river to a water-deficit area was mooted by the then Union Irrigation Minister Dr. K L Rao.
- Himself an engineer, he suggested the construction of a National Water Grid for transferring water from water-rich areas to water-deficit areas.
- Later, Captain Dinshaw J Dastoor proposed a Garland Canal to redistribute the water from one area to another.
- However, the government did not pursue these two ideas further.
- It was not until August 1980 that the Ministry of Irrigation prepared a National Perspective Plan for water resources development envisaging interbasin water transfer.
- The NPP comprised two components: Himalayan Rivers Development; and Peninsular Rivers Development. Based on the NPP, the National Water Development Agency (NWDA) identified 30 river links 16 under the Peninsular component and 14 under the Himalayan Component.
- Later, the river-linking idea was revived during the Atal Bihari Vajpayee regime.
- The Ken-Betwa Link Project is one of the 16 projects under the peninsular component.
8. Clearances for a river-linking project
Various types of clearances are required, such as techno-economic clearance (given by the Central Water Commission);
- Forest clearance, and environmental clearance (Ministry of Environment & Forests);
- Resettlement and rehabilitation plan of tribal population (Ministry of Tribal Affairs) and
- Wildlife clearance (Central Empowered Committee).
For Prelims & Mains
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For Prelims: river-linking projects, Ken-Betwa Link Project, Himalayan Rivers Development; and Peninsular Rivers Development, National Water Development Agency, Jal Shakti Ministry, The Panna Tiger Reserve, NitiAayog. Yamuna river, Ken-Betwa Link Project Authority (KBLPA),
For Mains:
1. Discuss the significance and hurdles of the Ken-Betwa River Link Project (250 Words)
2. What is River linking and discuss the significance of the River linking system in India (250 Words)
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Source: PIB and The Indian Express
